Mawson Infrastructure Group, Inc. Q4 FY2022 earnings call

• Q4 was a transitory period with the sale of Georgia facility to CleanSpark and focus on Pennsylvania facility expansion.
• Key highlights: Closed Georgia sale for over $40M, completed Phase 1 of Midland, PA to 120 MW capacity, secured Sharon, PA sites, and entered binding sale agreement for Texas facility for $8.5M.
• 2022 saw record revenue, hosting colocation growth, successful Energy Markets program with 91% gross margin, and balance sheet highlights like asset additions and debt reduction.

In 2022, Mawson generated record revenue of $84.3 million, up 92% year-on-year. Gross profit was $36.6 million, up 8% y-o-y. Non-GAAP EBITDA was $30.4 million, up 70% y-o-y. Bitcoin produced for self-mining increased 66% to 1,343 coins. Hosting colocation business grew 1,464% from 2021 to $13.3 million in 2022. The Energy Markets program generated $13.7 million in revenue with a 91% gross margin. The Georgia facility sale in Q4 brought $20.6 million in proceeds, and debt was reduced by $11.93 million in Q4.

• Focus on ramping up self-mining and hosting in 2023 and 2024.
• Expect to announce expansion details in early Q2 2023.
• Aim to maintain a strong balance sheet through strategic asset sales and operations, with focus on growth in 2023.

• Macro headwinds in the industry and economy.
• Dependence on Bitcoin prices and market conditions.
• Competition in the data center and mining sectors.
• Risks related to forward-looking statements and regulatory changes.

Q: Josh Siegler asked about hosting demand and progress in finding a hosting partner.

A: Liam Wilson said there's a large pipeline of hosting inquiries, with active negotiations for a hosting partner and hope to announce news soon.

Q: Kevin Dede asked about CapEx for Sharon, PA and mix of self-mining and hosting.

A: Liam Wilson said first 12 MW of Sharon is funded, balance will seek a partner; James Manning discussed focus on Pennsylvania region and optimizing between energy sales, mining, and hosting for max gross profit.

Q: Unidentified Analyst asked about Texas agreement closing and CleanSpark shares.

A: James Manning said Texas agreement expected to close in April, majority of CleanSpark shares sold, balance sheet strengthened since year end.

Q: Kevin Dede asked about infrastructure-first strategy and development vs sale.

A: James Manning said Mawson is good at building infrastructure, focusing on hosting, mining, and energy program, optimizing portfolio for recurring revenues and return on capital.